Vocabulary
What makes investments different from savings?
Investing often makes more sense for long-term goals.
Withdraw money from the plan to meet your goal.
Use your funds.
Would you conduct your financial business online? Why or why not?
No Closing Time
contact prospective clients to present information and explain available services
Warm calls: Although we do not recommend cold calling, warm calling can provide excellent results.
Name two stock classifications
common stock and preferred stock.
What is a personal investment plan
PIP is designed to provide one piece of your overall retirement portfolio.
Make a list of appropriate investments that will allow you to meet your goals.
stocks, bonds, real estate, and ETFs/mutual funds.
What questions would you ask before signing up for online financial services?
Is there a minimum balance requirement to avoid a monthly fee? ...
counsel clients on investment opportunities and market conditions
Lawyers who specialize in investment management play two roles: they help to actually form the fund in the first place (these are usually structured as limited partnerships) and help the firm negotiate how the investors can donate their money.
What are the two markets in which stocks are sold?
the secondary market
What is an initial public offering (IPO)
An initial public offering or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.
Weigh the pros and cons of risk taking. High-risk investments normally grow faster than low-risk investments. However, high-risk investments typically lose more in a bad economy.
Decide how much risk you are willing to take.
What are some of the advantages of online financial services?
Check balances on accounts and view records of your transactions.
buy and sell securities, such as stocks and bonds
through a brokerage house.
List the three major issuers of bonds
governments, banks, or corporate entities.
risk tolerance is what
Simply put, risk tolerance is the level of risk an investor is willing to take. But being able to accurately gauge your appetite for risk can be tricky.
Set up an investment plan and start investing to reach your target goal. Most investment plans can be funded on a monthly basis.
An investment strategy is what guides an investor's decisions based on goals, risk tolerance and future needs for capital.
Can you identify any disadvantages of online financial services?
limited cash access, security concerns, and the need for a stable internet connection.
buy and sell commodities, such as cotton, corn, oil, and gold
financial exchange
What are three advantages of mutual funds?
Diversification, Low cost, Convenience
rate of return is
A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost. When calculating the rate of return, you are determining the percentage change from the beginning of the period until the end.
Define short-term and long-term investment goals. Is your goal to invest for the short term, such as purchasing a car? Or for the long term, such as purchasing a house or planning for retirement?
Short-term goals are within a five-year window, while long-term goals are at least five years out.
What is Stock Categories
Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based on similarity in behaviour. For example, Stock Item. Sub Group.
monitor financial markets and the performance of individual securities
Focus on Interest Rate and Commodity Trends (Daily)
Name two alternative investment options
private equity or venture capital